Page 76 - CityofKellerFY25Budget

FY 2024-25 Five-Year Operating Fund Outlook

The Five-Year Operating Fund Outlook provides a financial analysis of major operating funds for the next
five fiscal years based upon the adopted budget’s ongoing expenses, the current five-year capital
improvements plan, percent growth assumptions, and anticipated future needs as discussed during the
budget process. The outlook is for forecasting purposes only and is to be used as a guide for preparing
future operating budgets. It is not committing the city to any future budget, project or other financial
considerations, nor is it a statement of the current or future financial health of the city.

Assumptions:

Unless otherwise noted, assumptions are based upon conservative growth. Revenue growth is generally
assumed to be 2 percent, and expenditures are generally assumed to be 3 percent. By having revenue
growth slower than expenditure growth, it helps to determine a “break even” point in future years. As
such, revenues being lower than expenditures in the later future years is not necessarily a concern, but
rather something to monitor in an effort to ensure future operationally balanced budgets. The assumption
tables are provided below and changes from the 2 or 3 percent increases are identified afterward.

Assumptions

Category FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30

Revenue Assumptions
Property Tax* 2.0% 2.0% 2.0% 2.0% 2.0%
Sales Tax 2.0% 2.5% 2.5% 2.5% 2.5%
Other Taxes 3.0% 3.0% 3.0% 3.0% 3.0%
Licenses and Permits -2.0% -2.0% -2.0% -2.0% -2.0%
Water Sales & Service 2.7% 3.2% 2.8% 3.3% 3.0%
Sewer Sales & Service 7.2% 7.6% 7.2% 8.2% 7.5%
Drainage Utility Fees 0.0% 0.0% 0.0% 0.0% 0.0%
Charges for Service 3.0% 3.0% 3.0% 3.0% 3.0%
Fines and Fees 0.0% 0.0% 0.0% 0.0% 0.0%
Development Fees -2.0% -2.0% -2.0% -2.0% -2.0%
Intragovernmental 3.0% 3.0% 3.0% 3.0% 3.0%
Intergovernmental 3.0% 3.0% 3.0% 3.0% 3.0%
Other Revenue -25.0% -50.0% 0.0% 0.0% 0.0%
Transfers In 2.0% 2.0% 2.0% 2.0% 2.0%

Expenditure Assumptions
Personnel services 3.5% 3.5% 3.5% 3.5% 3.5%
Operations & maintenance 2.0% 2.0% 2.0% 2.0% 2.0%
Services & other 3.0% 3.0% 3.0% 3.0% 3.0%
Wholesale water purchases 3.5% 5.6% 5.5% 5.5% 5.6%
Wastewater Services-TRA 18.5% 12.1% 9.3% 6.9% 6.9%
Debt service 0.0% 0.0% 0.0% 0.0% 0.0%
Transfers to other funds 0.0% 0.0% 0.0% 0.0% 0.0%
Capital outlay 0.0% 3.0% 3.0% 3.0% 3.0%

* Property Tax growth in total, however the percent growth in the General Fund and Debt Service Fund
will vary based upon debt requirements.

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